Get more when listing your business for sale

There is likely to be a wave of business owners wishing to
sell in the coming years. Unfortunately a number of these businesses won't be
attractive enough to sell, resulting in some just closing the doors. Less
people, with less capital, who have little appetite for risk having to operate
in tighter markets could make it harder when listing your business for sale so you get to sell for what you want.
Your business has to stand out as a good bet - profitable, interesting and with
a good future.

- How it looks - make sure it looks sharp, desirable and well poised for the
future.- Profitability - ensure it shows good and healthy accounts.- Cashflow - build your sales and minimise unnecessary expenses.- Systems and processes - ensure they are sharp, working well and fully
documented for ease of transfer.- Unnecessary assets and dated or surplus stock - get rid of it.- Documentation - ensure all agencies, leases, licenses, patents and contracts
are current and in place.

Poised with a Future
Homeowners will often remodel or repaint their houses to help them sell and get
their best price. Business owners need to do likewise to maximise the value of
their opportunity before listing a business for sale. Making your business look attractive, and showing that it
has a future will help maximise your price and catch the attention of more
potential buyers. If necessary, reposition your business to show it has a
future. Also clean it up, attend to maintenance and replace, fix and paint so
it becomes the sort of business someone would want to buy. For a relatively low
outlay, this can be a very profitable exercise.

The Cashflow
Ensure your business accounts reflect a well-run and preferably profitable
business. the value of a business is invariably determined by its current and
future profits. Buyers and lenders will look at the performance of the business
in the immediate past and often the last three years to guide them in assessing
future trends and profits. Always be on the lookout for ways to increase sales
and reduce your costs. The strongest influence you can have as a proprietor is
to ensure that your business is as efficient and profitable as possible. This
proven track record will provide the purchaser with tangible evidence of
potential value for the future.

Systems and Processes
Owners are often the main source for client contacts and daily operations -
with other activities being assumed by staff. Unfortunately this only attaches
the goodwill to the business owner, and is of concern to any potential buyer. By
methodically working through all key areas of your business, hone and document
your systems and processes. Such details, well documented, are of great value to
any business buyer. These along with reducing the business' dependence on you
will assist in transferring the goodwill with the business. Your how-to
documents do not have to be long and complicated, but will add value when it
comes time to sell.

Streamline
Any assets, be it plant or vehicles, which are not essential to running the
business should be removed from the balance sheet. Removing these assets from
the balance sheet prior to the sale will ensure that the price being asked for
the business includes only the assets essential to running it, this helps keep
the asking price in the reach of the purchaser.

Review all stock on hand and clear out any dated or surplus stock, this
will help keep the asking price down.

Compile a comprehensive list of all assets and their values. This will quantify what the business comes with.

Quantify
If your systems, processes and customer lists are well documented, your
contracts are in place and any leases formalised appropriately, then it is much
easier to quantify and attach a value to these non-tangible assets.

Buyers want facts and will ask plenty of questions. Be prepared to answer
everything and anything about your business. This includes balance sheets,
sales, staffing, and your assets and liabilities to mention a few. If there are
any issues then it pays to sort these out before placing your business for
sale.

Selling
Put a business exit strategy in place so you have time to prepare your business for your best outcome. Download or request a copy of our "nzbiz Seller checklist" to help you build the value into your business so you get more the day you sell...